musicMagpie reports record sales during Black Friday week

Stockport-based recommerce business, musicMagpie, has revealed record breaking Black Friday week sales figures in its full year pre-close trading update.

The Group’s has finished its financial year to 30th November with performance in line with management’s expectations, despite cautious consumer behaviour over the summer and early autumn in light of the growing squeeze on household finances.

November saw increased sales activity for musicMagpie, culminating a achieving record sales during Black Friday week at the end of the month. Full year revenue for the Group will be £144.8 million, down £0.7 million on the previous year.

The Group’s growing rental service also had a strong year end.  Whilst rental reduces outright sales as consumers choose to rent rather than buy, it provides a higher margin and significantly greater profitability to musicMagpie over the lifetime of the device. Active subscribers at 30 November 2022 were 30,500, up 27% since the Group’s interim period end on 31 May 2022.  To further improve recurring revenues from rentals and reduce consumer costs, the Group launched a 24 month contract option in December 2022 and expects this expansion of the offering to help drive growth into the new financial year.

With strong trading in November, net debt at 30 November 2022 was £8.2 million, better than management’s prior expectations.  The Group has a £30 million committed revolving credit facility to support future growth in the rental service.

Whilst cognisant of the challenging consumer environment and growing cost pressures on both businesses and the consumer, the Board remains confident in the Group’s strategy and in its medium-term growth prospects, underpinned by the growing and differentiated rental proposition.